Wisconsin agriculture remains a cornerstone of the state’s economy. Despite challenges in 2024, the industry continues to thrive and adapt, contributing a massive $116 billion to the state’s economy annually. Steve Deller and Jeff Hadachek, economists with the University of Wisconsin, have released their latest study, The Contribution of Agriculture to the Wisconsin Economy, highlighting trends, challenges, and opportunities as the state moves toward 2025.
“Every five years, we update this report to align with the Census of Agriculture,” explained Deller. “Our goal is to present key data in a meaningful way without overwhelming people.” The report provides a comprehensive look at Wisconsin agriculture, from staple crops like corn and soybeans to emerging sectors like local and organic foods. Notably, the study highlights a shift toward niche markets and specialty products, which are gaining momentum. “These smaller-scale operations are feeding into local food systems and creating real opportunities,” added Deller.
Food Processing: A Powerhouse of Value
Hadachek, in his first year with UW Extension, emphasized the significance of food processing. “While farms lay the groundwork, much of the value comes from turning raw products into something more—cheese, cranberries, beer, and more. In fact, $107 billion of agriculture’s total economic contribution comes from food processing,” he noted. “From cheese makers to cranberry processors, much of the value happens off the farm.”
Food processing has grown substantially, increasing from $82 billion in 2017 to $107 billion today. “Labor productivity is rising, but fewer workers are spending money in local economies,” said Deller.
Sustainability and Environmental Impact
Farmers are stepping up to meet consumer demand for sustainability. “The report found that Wisconsin agriculture accounts for 17 million metric tons of CO2, about 14% of state emissions,” Hadachek revealed. “Coincidentally, this aligns with agriculture’s 14% contribution to state revenue.”
Farmers are increasingly adopting sustainable practices to meet consumer demands for environmental accountability. “Today’s consumers care about the story behind their food,” said Hadachek. “Farmers are documenting practices to highlight their sustainability efforts.”
A Changing Landscape
We’re not losing farms, they’re just transitioning into a different type of agriculture. Wisconsin is seeing growth in specialty farming and niche markets. Small operations focused on local foods, organic crops, and artisan products are thriving, adding diversity and resilience to the industry.
Hadachek emphasized the importance of a holistic view. “Agriculture isn’t just farming; it’s food processing and the entire supply chain. Urban legislators must recognize agriculture’s impact, even in their districts.”
Looking Ahead to 2025
As Wisconsin heads into a new political administration and debates over the Farm Bill intensify, this report serves as a timely resource. “Policymakers, farmers, and consumers alike need to understand the dynamic role agriculture plays in Wisconsin,” said Deller.
Hadachek added, “Agriculture isn’t just about farms—it’s about our entire way of life in Wisconsin. It touches every corner of Wisconsin, from rural farms to urban food processors. It supports over 353,000 jobs, drives local economies, and provides the food on our tables. Wisconsin agriculture isn’t just surviving; it’s evolving, innovating, and powering the state’s economy in remarkable ways.”
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